💳

Debt Snowball & Avalanche Calculator

Enter all your debts and see which payoff strategy — snowball or avalanche — gets you debt-free faster and cheaper. Free, instant, no signup.

Advertisement

Your Debts

Best method
Debt-free in
Total interest (avalanche)
Interest saved vs snowball

Snowball vs Avalanche: Which Should You Use?

Both methods use the same idea: pay the minimum on every debt, then throw every extra dollar at one target debt until it's gone, then roll that freed-up payment into the next one. The only difference is which debt you target first.

Method Targets First Best For
❄️ Snowball Smallest balance Motivation — fast early wins keep you going
🏔️ Avalanche Highest interest rate Math — always the least interest and fastest payoff

The avalanche method is mathematically optimal: by killing the highest-rate debt first, you stop the most expensive interest as early as possible. The snowball method usually costs a little more in total interest, but clearing a whole debt quickly gives a motivation boost that helps many people actually finish. For most Canadians carrying credit-card debt at 20%+ APR, the two methods often pick the same first target anyway.

How to Use This Calculator

  1. Add each debt with its balance, interest rate (APR), and minimum monthly payment.
  2. Enter any extra monthly payment you can add on top of the minimums.
  3. Click Compare to see your debt-free date and total interest under each method.
  4. Use the payoff order to know exactly which debt to attack first.

Frequently Asked Questions

What's the difference between snowball and avalanche?

Snowball targets the smallest balance first for quick wins; avalanche targets the highest interest rate first for the lowest total cost.

Which method saves the most money?

Avalanche always costs the least total interest and clears debt fastest, because it stops your most expensive interest first.

Should I pay off debt or invest?

Clear anything above roughly 6–8% first — especially credit cards at 20%+ — since few investments reliably beat that after tax.

Does paying extra really matter?

Enormously. Even a small consistent extra payment aimed at one target debt can cut years and thousands in interest off your payoff.

Advertisement